The Risk Oversight Committee was established by and is responsible to the BoC to support the effectiveness of BoC duties and responsibilities related to application of the Bank’s risk management principles.
Legal References
The establishment of the Risk Oversight Committee is based on the following regulations:
• POJK No. 55/POJK.03/2016 dated 7 December 2016 on Implementation of Corporate Governance for Commercial Banks.
• SEBI No. 15/15/DPNP dated 29 April 2013 on Good Corporate Governance Implementation for Commercial Banks.
• Articles of Association on the duties and authorities of the Board of Commissioners.
Risk Oversight Committee Charter
CIMB Niaga Risk Oversight Committee established a Charter that govern the membership, structure, authority, duties and responsibilities, meetings, activities and standard practices of the Risk Oversight Committee in carrying out its functions.
The Risk Oversight Committee Charter was last updated on 29 April 2016 and has been uploaded to the Bank’s website. Furthermore, the Risk Oversight Committee Charter is periodically reviewed to ensure compliance with the most recent applicable regulations.
Structure and Membership
Membership and composition, as well as the independence of the Risk Oversight Committee members has fulfilled BI and OJK requirements. In 2016, CIMB Niaga Risk Oversight Committee consisted of 1 (one) Chairman who is an Independent Commissioner, 2 (two) members who are Commissioners, and 2 (two) non-commissioner members as Independent Parties with competencies and qualifications in finance and risk management.
Members of the Risk Oversight were appointed based on Nomination and Remuneration Committee Recommendation No. 006/NOMREM/KP/III/2016 dated 23 March 2016, and approved by Board of Commissioners Circular Decision No. 007/DEKOM/KP/IV/2016 dated 6 April 2016. The appointment was effective at the close of the 2016 AGMS up to the close of the 2020 AGMS.
Risk Oversight Committee Membership Composition in 2016
No Name Position Position in the Committee Period Position
1 Zulkifli M. Ali Independent Commissioner Chairman 2016 - 2020
2 Glenn M. S. Yusuf Vice President Commissioner Member 2016 - 2020
3 David Richard Thomas Commissioner Member 2016 - 2020
4 Firmanzah** Independent Party Member 2016 - 2020
5 Sri Indrastuti (Tuti) S. Hadiputranto**** Independent Party Member 2016 - 2020
6 Yap Tjay Soen*** Independent Party Member 2016 - 2020
7 Ananda Barata* Independent Party Member 2013 - 2016
8 Binhadi* Independent Party Member 2013 - 2016
9 Shariq Mukhtar* Independent Party Member 2013 - 2016
* Term of office as a member of the Risk Oversight Committee ended at the close of the 2016 AGMS on 15 April 2016.
** Appointed at the AGMS on 15 April 2016.
*** Appointed at the AGMS on 15 April 2016 and no longer served as a member of the Risk Oversight Committee in July 2016.
**** Serves as a member of the Risk Oversight Committee in July 2016 replacing Yap Tjay Soen.
Qualifications & Profiles of Members of the Risk Oversight Committee
Member Profile Career Background Education
Zulkifli M. Ali Chairman
Appointed as Chairman of the Risk Oversight Committee since March 2013 and concurrently serves as Chairman of the Audit Committee. He also serves as an Independent Commissioner.
Detailed profile is listed in the Board of Commissioners Profiles
Listed in the Board of Commissioners Profiles.
Glenn M. S. Yusuf Member
Appointed as member of the Risk Oversight Committee since March 2013. He also serves as Vice President Commissioner.
Detailed profile is listed in the Board of Commissioners Profiles
Listed in the Board of Commissioners Profiles.
David Richard Thomas Member
Appointed as member of the Risk Oversight Committee since November 2014. He also serves as Commissioner.
Detailed profile is listed in the Board of Commissioners Profiles
Listed in the Board of Commissioners Profiles.
Firmanzah Member
Indonesian citizen, 40 years old. Appointed as of the Risk Oversight Committee since April 2016.
Currently he serves as Rector at Paramadina University, Professor of the Faculty of Economics and Business at the University of Indonesia, and the Index Committee of Infrastructure Stock of PT Sarana Multi Infrastruktur Indonesia (Persero).
Holds a PhD in Strategic and International Management at the University of Pau et Pays de l’Adour, France. Master of Philosophy from the University of Science and Technology of Lille 1, France. MBA from the University of Pierre Mendes-Grenoble II, France and Master of Management and Economics degree from the University of Indonesia.
Sri Indrastuti (Tuti) S. Hadiputranto Member
Indonesian citizen, 73 years old. Appointed as of the Risk Oversight Committee since July 2016.
She is one of the founding partners of Hadiputranto, Hadinoto &
Partners, a prominent Law Firm in Indonesia, member of Baker &
McKenzie International Law Firm.
She specialised in corporate, mergers and acquisitions and debt restructuring of Indonesian companies/banks.
She was member of the Board of Commissioners of the Indonesia Stock Exchange (IDX) in 2001 - 2004, serving as a member of various IDX committees, the last one was the Membership Discipline Committee.
She has been consistently named as top rankings in leading legal
She holds a Bachelor Degree in Laws from the University of Indonesia in 1970, Master of Laws from the University of Washington in 1981.
Board of Commissioners Committees
Training for Independent Party of Risk Oversight Committee
No. Name Training/Seminar/Workshop/Sharing
Knowledge Organizer Date and Place
1. Firmanzah Jury of Mandiri Award Bank Mandiri 28-29 January 2016 in Jakarta
Panelist of Indonesia Economic Quarterly World Bank 15 March 2016 in Jakarta
T20 Summit G20 Think Tanks 28-31 July 2016 in Beijing,
China Speaker in various of events including:
Trans Pacific Partnership Bappenas 24 February & 2 March 2016 in Jakarta
General Lecture: Strategy for the Development of Education and Professionalism in Improving Competitiveness in MEA
UIN 8 March 2016 in Jakarta
Role of Insurance Industry in Empowering SMEs
& Cooperatives KMI 29 March 2016 in Jakarta
Launching of Study on the Stability of Financial
System Bank Indonesia 30 May 2016 in Jakarta
Book launching “Out of the Comfort Zone:
Transformation of Peruri to Become Best Company”
Peruri 13 June 2016 in Jakarta
Capacity Building for the Implementation of DPR-RI Budget Function: Macro Policy Design of
State Budget in the National Development FPKB RI 26 August 2016 in Cisarua, West Java
FGD on the Challenge of Creating 2 Million
Decent Job Bappenas 1 November 2016 in Jakarta
Annual Meeting of BI Sulawesi Bank Indonesia 6 November 2016 in Gorontalo
Annual Meeting of BI South Sulawesi Bank Indonesia 29 December 2016 in Makassar, South Sulawesi
Term of Office
The term of office of the Risk Oversight Committee members shall not be longer than the term of office of the BoC as stipulated in the Risk Oversight Committee Charter and can only be re-elected for one other term. The term of office of members of the Risk Oversight Committee that are appointed during an existing BoC term of office will automatically end at that BoC term of office.
Duties and Responsibilities
The Risk Oversight Committee conducts duties and responsibilities in a professional and independent manner without interference from any party that does not comply with legislation.
In general, the main duties and responsibilities of the Risk Oversight Committee are to provide recommendations to the BoC to support effective carrying out of BoC duties and responsibilities with regard to risk management, such as:
1. Evaluate alignment between risk management policies and implementation of Bank policy; and 2. Monitor and evaluate the operation of risk
management Executive Committees: Risk Management Committee and Risk Management Unit.
Activity Report 2016
In 2016, the Risk Oversight Committee carried out its activities in accordance with the Risk Oversight Committe’s Work Plan, which is prepared once a year, referring to the duties and responsibilities of the Risk Oversight Committee as stated in the Risk Oversight Committee Charter. Activities and recommendations generated during 2016 were, among others:
1. Review and submit recommendations to the BoC on the policy/ framework adopted by the BoD with regard to risk management, including capital management (Internal Capital Adequacy Assessment Process), which includes the determination of the risk appetite statement, risk posture, sector appetite, as well as the
2. Evaluation on the duty implementation of the Risk Management Committee and Risk Management Unit and the evaluation on the conformity between risk management policies and their implementation through the discussion of:
a. Internal reports that include monitoring results of macro-economic conditions, financial performance and risk indicators of the Bank in order to ensure conformity with the Bank’s risk appetite.
b. Mandatory reports to the Bank Supervisory consisting of the Risk Profile Report, Bank Rating Report and other reports to ensure conformity of the submitted information with the risk conditions faced by the Bank.
3. Monitoring of Bank credit risk through the discussion of:
a. Status and projection of asset quality of each loan segment in order to ensure that each business units have taken the necessary steps to maintain and improve the Bank’s asset quality to ensure compliance with the predetermined risk appetite.
b. Thematic review of Loan portfolios that had a high correlation with economic fluctuations in 2016.
c. The implementation status of the initiative to improve the credit process.
4. Evaluation on the Bank strategic steps through the discussion of:
a. Budget planning, business strategy and 2017 Bank Business Plan in accordance with Bank’s risk appetite.
b. Risk aspects of initiatives/strategic projects in progress including proposal of new products and activities.
c. Latest report on the implementation of the Basel and IT projects, in particular the 1Platform project, which has been running since January 2016.
5. Monitoring on significant audit findings from the point of view of operational risk management, including the report of investigations results as well as improvement and mitigation follow-ups to be conducted.
The Risk Oversight Committee provides activity reports and recommendations to the BoC on a regular basis.